Pfizer's move comes even as the American multinational has, possibly for the first time, commenced "development work" with a local company for a formulation. Pfizer would pay the local company for it's effort, even as the transnational maintains that the product "is not a dramatic one" but offers significantly "new benefits". Pfizer Ltd is a 40 per cent subsidiary of American giant, Pfizer Inc.

Pfizer managing director, Ian R Young, told The Financial Express that Becosules+, which has been under development for the past 18 months, "is not a reaction" to the recent government order enforcing a ceiling price on Becosules.

The National Pharmaceutical Pricing Authority (NPPA) had, in mid-April, slashed the prices ofPfizer's Becosules formulation by 31.48 per cent to Rs 7.90 from Rs 11.53 (a strip of 10 capsules). Becosules, the country's leading formulation brand, contributes roughly Rs 80 crores to Pfizer's topline.

Young said that Becosules+ has been priced "very close" to the original Becosules price (prior to the NPPA order) and is not meant to replace the original version. Omni-Protech Drugs, the assignee of Pfizer's Becosules brand, has sought a review of the NPPA's April 15 decision and the matter has now been passed on to the concerned ministry.

On whether, Pfizer was looking at an alliance with Shanta Biotec for vaccines, Young said, "we looked at it, as did several others", but nothing has been agreed on. Globally, the US giant has a significant presence in the area of animal health vaccines.

The Indian arm has also launched Combantrin-A, an anthelmintic, even while Young denied any plans to introduce, "in the short term", leading international anti-diabetes drug, Glucotrol XL.

Institutionsconcerned over Pfizer's 100% subsidiary plan

Domestic financial institutions which hold a significant stake in Pfizer Ltd are believed to have expressed concern over Pfizer Inc's plans to set up a 100 per cent subsidiary in India. Pfizer's top management is already working towards addressing these concerns and will strive to drive home the "synergistic relationship" and "benefits" that would accrue to the Indian arm once the new company is set up.

Pfizer managing director, Ian R Young said that the 100 per cent subsidiary would channel the American giant's R&D operations and safeguard proprietory rights for patented products.

He added that even products launched through the 100 per cent arm would be marketed by the Indian company and in many cases the local company may even undertake manufacturing.